Which of the ratios listed helps to indicate the average profit on each dollar of sales?
A) Current ratio
B) Profit margin
C) Gross margin
D) Return on assets

Name: Which of the ratios listed helps to indicate the average profit on each dollar of sales? A) Current ratio B) Profit margin C) Gross margin D) Return on assets
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

The profit margin ratio indicates the average profit on each dollar of sales by dividing the net income by total sales.

Which of the Ratios Listed Helps to Indicate the Average